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Congress returns for a three-week period before the Memorial Day recess. Key items on the agenda include a state internet sales tax measure, a water development bill, employment legislation, and bill regarding the US debt limit. The farm bill will also be in focus with expected release of the House farm bill as early as Wednesday, with Senate farm bill action less certain, despite continued reports of a Thursday Ag Committee markup session

Senate leadership wants to complete action on a bill (S 743), which would allow states to require online retailers to collect state and local taxes for sales made over the internet.

WRDA. The Senate will then turn to a measure (S 601) to reauthorize the civil works program of the US Corps of Engineers. A procedural vote to limit debate on the motion to proceed to the Water Resources Development Act (WRDA) is scheduled to occur immediately after the vote on final passage of the internet sales tax measure. If cloture is invoked, the Senate is expected to continue on the bill for most of the week. The Senate Environment and Public Works Committee unanimously reported WRDA during a March 20 markup. Supporters of the measure say it would increase the pace of approving, financing, and building water infrastructure projects.

During the week the Senate could consider any of President Obama's nominations which have been cleared for floor action.

House GOP leadership plans to move a controversial bill (HR 1406) that would allow employers to offer compensatory time rather than time-and-a-half cash wages for overtime hours worked. The House Education and Workforce Committee approved the Working Families Flexibility Act April 17 on a 23-14 party-line vote. Members will also debate a bill (HR 807) that would specify how the Treasury Department can issue debt.

South Korean president. At 10:30 a.m., ET, on Wednesday, the House will convene in a joint session with the Senate to receive an address by Park Geun-hye, president of the Republic of Korea.

Debt bill focus of House action. After the joint meeting, the House will return to legislative business to begin debate of a bill (HR 807) to allow the US Treasury Department to issue debt only to pay obligations to the public and the Social Security Trust Fund if Treasury bumps up against the statutory debt ceiling. The bill was approved April 24 by the House Ways and Means Committee on a 22-14 vote. Debate on the Full Faith and Credit Act is likely to continue May 9. There will be no votes in the House on May 10.

Nominees. The Senate Environment and Public Works Committee plans to move forward on the nomination of Gina McCarthy to be administrator of the Environmental Protection Agency. The committee is set to meet Thursday morning to vote on President Obama's choice to head the agency.

A vote on the nomination of Thomas Perez, to head the US Department of Labor, is set for Wednesday morning by the Senate Health, Education, Labor, and Pensions Committee.

Export-Import Bank of the US. The Senate Banking, Housing, and Urban Affairs Committee will meet Tuesday morning to examine the nomination of Fred P. Hochberg to be president of the Export-Import Bank of the United States. Hochberg, of New York, will testify before the panel.

The House Financial Services Committee will hold a Tuesday business meeting on several securities-related pieces of legislation. The legislation to be considered includes a bill (HR 701) which would direct the Securities and Exchange Commission (SEC) to add a particular class of securities to those exempted under the Securities Act of 1933 to prove a deadline for such action, the Swap Data Repository and Clearinghouse indemnification Act (HR 742), and the Swaps Regulatory Improvement Act (HR 992).

The economic data flow is not as headline-grabbing coming up, with just a handful of reports due out. Tuesday will bring an update on Consumer Credit while the weekly Jobless Claims and Wholesale Trade figures will come out on Thursday, with the Treasury Budget statement wrapping up the week on Friday. There are several Federal Reserve speakers on tap and they’ll now be free to comment on monetary policy as the blackout period following the FOMC meeting will be lifted. But the big focus will be on Friday remarks from Fed Chairman Ben Bernanke. Besides data and Fed speakers, markets will continue to monitor earnings reports, which have been providing support typically to the market on light data days. Data out of Europe and China could also catch market attention, particularly crude oil futures.

For agriculture, Monday’s Crop Progress report should show corn planting still well behind normal for the week ended May 5, with demand news the watch point for the Thursday Weekly Export Sales report. Weather will remain a factor as markets try to gauge how soon farmers will be getting back into fields after rain and snow opened May for much of the US Corn Belt. But the big focus will be on USDA’s Crop Production report on Friday morning, which will offer the first survey-based estimate of the US winter wheat crop. Plus, the Supply/Demand report will contain the first 2013/14 balance sheets, which are likely to reflect the slow planting pace when it comes to the projected corn yield for this year. But the S/D data is not based on farmer surveys, data that won’t come until August.

This week's Washington-related agenda: The agenda for congressional committees features hearings on educational facilities reporting of taxable income, the Medicare physicians payment system, President Obama's nominations, immigration policy and its impact on the economy, and FY 2014 agriculture appropriations.

Tuesday, May 7
President Obama meets South Korean President Park Geun-hye in Washington. Europe: German and French finance ministers and central bankers meet in Berlin.Vilsack: Agriculture Secretary Tom Vilsack will travel to Madison, Wis. to announce funds for major research initiatives to study the weather and climatic variability on beef and dairy cattle in Wisconsin.Federal Reserve's Senior Loan Officer Survey, which provides a comprehensive picture of commercial-bank loans, is released.FY 2014 budget: Rajiv Shah, administrator of the US Agency for International Development, testifies on the FY 2014 budget before the Senate Appropriations State-Foreign Operations Subcommittee. Nominee, Export-Import Bank of the US: The Senate Banking, Housing, and Urban Affairs Committee will meet Tuesday morning to examine the nomination of Fred P. Hochberg to be president of the Export-Import Bank of the United States. Hochberg, of New York, will testify before the panel. US energy exports: Subcommittee hearing. House Energy and Commerce — Subcommittee on Energy and Power. Border security provisions in immigration bill: Committee hearing. Senate Homeland Security and Governmental Affairs Committee. Economic reports: ICSC-Goldman Store Sales | Consumer CreditUSDA reports:Weekly Weather and Crop Bulletin (WAOB) | Aquaculture Trade Data (ERS)